Stooge Enterprises manufactures ceiling fans that normally sell for $90 each.There are 300 defective fans in inventory,which cost $55 each to manufacture.These defective units can be sold as is for $20 each,or they can be processed further for a cost of $40 each and then sold for the normal selling price.Stooge Enterprises would be better off by a
A) $21,000 net increase in operating income if the ceiling fans are repaired.
B) $9,000 net increase in operating income if the ceiling fans are sold as is.
C) $9,000 net increase in operating income if the ceiling fans are repaired.
D) $21,000 net increase in operating income if the ceiling fans are sold as is.
Correct Answer:
Verified
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